The failure of GN Bank and others was tantamount to a policy failure – Alan

Movement for Change leader Alan Kwadwo Kyerematen believes the decision to close down Groupe Nduom Bank and other financial institutions was a failed government intervention.

He added that since the Bank of Ghana (BoG) regulator had recommended that the failed bank be reclassified as a savings and loan company, there was no need to suspend its operations.

The presidential candidate made these statements when the Groupe Nduom board presented a petition to the political party stating that if elected president, he would investigate the circumstances that led to the collapse of the bank.

“In my opinion, the government’s decision to revoke the licenses of not only GN Bank but other Ghanaian-owned banks was tantamount to a political defeat. It was a failed political intervention for strategic reasons.

“Particularly in your case, if the government at that time believed that there were violations and unethical conduct on the part of GN Bank, it would not make sense for them to advise you to apply for reclassification when you were still working within the context of certain rules and regulations in the financial sector. If the government asks the bank to reclassify, it will be difficult to revoke its license after such consideration,” he said.

The presidential candidate also noted that the collapse of GN Bank and other financial institutions was a failed policy and wondered why the government was borrowing money to restore stability to the financial sector.

Mr Kyerematen said the collapse of GN Bank was a great loss to the country because of the financial institution’s determination to enhance financial inclusion and create jobs for Ghanaians.

He also assured the board of his ambition to make Ghana the financial hub of West Africa.

The presidential candidate was joined by senior officials of his party, notably Mr. Nana Ohene Ntow, Mr. Abubakar Siddique Boniface and Mr. Buabeng Asamoah to engage with the leadership of Groupe Nduom.

Groupe Nduom chairman Dr Paa Kwesi Nduom has said “secret” meetings with the government aimed at paying off debts and resolving liquidity problems that led to the bank’s collapse have proven ineffective.

He added that the management of the closed bank had been continuously petitioning the relevant authorities, but their request had gone unanswered.

However, he was confident that the presidential candidate would restore the bank’s license if elected because of his determination to see domestic businesses succeed.

He said the reinstatement of GN Bank’s license was crucial given the impact its absence had on the financial sector, especially in rural Ghana.

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